Bonus

[Thingshappen]

Hello. Is there a chance where a debtor can keep a bonus or part of it? Can a not yet earned bonus (2023) be included in the payment plan?

[shipo]

I kept all seven of my bonuses (five annual and two "spot") throughout the course of my bankruptcy; during one year the bonuses totaled roughly 25% of my annual income. That said, I made sure I increased my 401(K) witholdings prior to the actual payout to make my net income look relatively flat (i.e. no more than a 10% gain year over year).

[Thingshappen]

Wow. that's great! But my bonus is part of my YTD income which is in my paystub. Wouldnt I have to let the Trustee know about it? I guess they could include it in my payment plan so I get to keep the bonus but I am afraid the monthly payment may be too high.

[shipo]

The way my attorney structured my filing was to wait until late in the year, fully 9 months after my bonus had been paid, and show the previous six-months of my pay stubs.